Virtual Net Metering in India: Who Can Use It, State by State

A society secretary in Pune asks a plain question: can our 40 flats share one big plant on the terrace and each see a lower bill? The honest answer is that it depends on the state, and then on the DISCOM's process. (Illustrative.)

Virtual net metering (VNM) and group net metering (GNM) are not national schemes. The central Electricity (Rights of Consumers) Rules do not define either one. Each State Commission decides whether to allow them, who qualifies and how the credit is shared.

This guide reads each regulator's own text and dates every entry as of 31 October 2026. It is for installers who sell to societies, multi-site owners and groups of MSMEs. It is a working guide, not legal advice. Confirm the position with the DISCOM in writing before you put a credit in a quotation.

What the central Rules say about virtual and group net metering

The central Rules say nothing that defines them. We read the Gazette text of the Electricity (Rights of Consumers) Rules, 2020 and its amendments of 2021, 2022, 2023 and 2024. None contains a definition of virtual or group net metering.

Rule 11(4), as replaced in June 2021, says net-metering, gross-metering, net-billing or net feed-in arrangements follow the regulations of the State Commission. Only where a state has no such rule may the Commission allow net metering up to 500 kW or the sanctioned load, whichever is lower.

Sources: the five Gazette texts linked above, checked on 31 October 2026. They are signed Gazette PDFs hosted by state commissions (mperc.in, apserc.nic.in); powermin.gov.in did not open.

The push comes from elsewhere. MNRE's PM Surya Ghar CFA guidelines of July 2025 say shared plants are subsidy-eligible on a roof if the DISCOM approves the metering (clause 5(b)), and that every metering arrangement a state commission approves is covered (clause 6(l)).

The Wire, Name, Class Check: three questions before you promise credit

Every regulation we read comes down to three tests, which we call the Wire, Name, Class Check. Run it before you design anything. A "no" on any one means the arrangement the customer imagines does not exist in that state.

1. 1

   Wire: is everything in one DISCOM's area of supply?

   Delhi, Maharashtra, Gujarat, Jharkhand, Odisha, Telangana and Kerala all say the connections must sit within the same distribution licensee's area. A group with units under two DISCOMs cannot form one arrangement. Maharashtra and Gujarat also require the plant to sit in that area.

2. 2

   Name: who signs, and who counts as one consumer?

   GNM is for one consumer with several connections. Gujarat reads it as the same name and tariff category. VNM needs participating consumers who agree an allocation ratio. Maharashtra and Gujarat also require one Lead or Nodal consumer to sign and write on behalf of the rest.

3. 3

   Class: which tariff category may join?

   Maharashtra allows VNM only for residential consumers in a multi-storey building. Gujarat requires the same tariff category. Telangana requires the same category as the parent consumer. Delhi, under an amendment dated 20 January 2026, allows all consumers. Kerala lists flats, low-income groups, government offices, small MSMEs and farms.

State by state: where GNM and VNM stand on 31 October 2026

Six states have notified rules we could read in full. They differ on who can join, how big the plant can be and which charges apply. Table A is what we read. Table B lists states where we found nothing, found only a draft, or could not open the regulator's text.

Table A. Notified and read from the regulator's own text

Sources: each instrument linked in the row, read on 31 October 2026 (Kerala: Regulations 10, 11 and 31). KSERC's file store is the only copy of the Kerala text we could open. Gujarat: the commission lists the regulation as dated 30-10-2026 and says it applies from notification in the Official Gazette; we did not see the Gazette copy, and DISCOM procedures were not yet visible. Telangana is read from a scanned Gazette, so figures were checked against clause context.

Table B. Draft, none found, or not confirmed

A listing on a regulator's page is not a working process either. In its 25 March 2026 tariff order, MERC records objections from industry bodies that MSEDCL had not implemented virtual net metering despite the 2024 regulations (Case No. 75 of 2025, para 4.12.13). That is a stakeholder objection, not a MERC finding. It is the reason to ask for the DISCOM's form and procedure first.

Delhi, Maharashtra and Gujarat in more detail

Most society and multi-unit enquiries come from these three. Each has a different catch.

Delhi: the longest rulebook, now open to all consumers

Delhi's 2019 guidelines are the template Odisha's 2022 order cites and Jharkhand's 2024 regulations closely follow. The Seventh Amendment, dated 20 January 2026 and effective from its upload to the DERC website (DERC text) now says VNM applies to "all consumers of NCT of Delhi including consumers of single point of supply". It also lets participants change the ratio or add new connections twice a year with two months' notice.

For GNM, surplus from the connection that hosts the plant is adjusted against the consumer's other connections in a priority list the consumer provides. The list can be revised once a year. The Fifth Amendment of March 2024 says DISCOMs bear service-line and network augmentation costs up to 11 kV, within cumulative caps (raised by the Seventh Amendment), and must publish available VNM and GNM capacity every quarter. For the application route, see our guides to Tata Power-DDL and BSES Rajdhani.

Maharashtra: VNM is for residential flats only

MERC's Second Amendment (Gazette, 29 August 2024) lets residential consumers in a multi-storey building set up a plant at any place in the same DISCOM area and take credit under VNM. Several residential consumers of one housing society or apartment owners association, including their common connection, can build a plant together. Total capacity cannot exceed the sum of what each participant is eligible for. A Lead Person signs the Net Metering Agreement for the others, and the licensee fits a check meter.

The statement of reasons is blunt about everyone else. MERC says it is "consciously restricting Virtual Net Metering to Residential consumers in multi storied building only". Other categories can use net metering, group metering or green energy open access. For factories, read our MSME playbook.

One date to watch. The regulation exempts open access charges and losses "till installed capacity of rooftop solar reaches 5000 MW in Maharashtra". MERC's March 2026 order records MSEDCL's letter of 20 February 2026 putting statewide rooftop capacity at 5,178.81 MW. We did not find an order that says how those charges now apply to new VNM plants. The same order sets a grid support charge on net-metered rooftop plants above 10 kW once 5,000 MW is reached (FY 2026-27: ₹1.42 per generated unit HT, ₹1.96 LT). It speaks of net-metering consumers, not VNM. Ask MSEDCL in writing which charges your participants face. See the MSEDCL guide for the routine steps.

Gujarat: notified on 30 October 2026, procedures to follow

GERC's commission page lists its Grid Interactive Distributed Renewable Energy Sources Regulations, 2026 as notified on 30 October 2026. The text (PDF) repeals the 2016 net metering regulations. It lets all consumer categories use GNM (same name, same tariff category) and VNM (same tariff category), and the definition of eligible consumer includes "a Consumer catering to a common load such as a Housing Society".

The money rules differ by class. Non-residential VNM participants can bank credit only up to 30% of the energy they draw, within the same billing cycle, and pay banking charges. Residential participants pay no banking charge and get ₹2.25 per kWh, or the Commission's rate, for surplus. Wheeling charges and losses apply to VNM participants. Confirm each Gujarat DISCOM's procedure before you quote.

How VNM and GNM fit with PM Surya Ghar

MNRE's July 2025 guidelines allow the subsidy for a shared plant only in narrow cases. A VNM or GNM installation is CFA-eligible if it is on a roof, terrace, balcony or elevated structure (or BiPV) and the DISCOM approves the metering arrangement (clause 5(b)). Everything else in the subsidy text is built around individual homes and society common facilities.

Source: MNRE, Guidelines for PM-Surya Ghar: Muft Bijli Yojana, CFA to Residential Consumers, July 2025, clauses cited in the table, read 31 October 2026.

Clause 5(f) creates a puzzle. If a society's common connection is eligible only while it serves common facilities, using the same connection to credit flats under VNM may sit uneasily with it. That is our reading, not an MNRE ruling. Ask the DISCOM and the portal in writing which route applies before you add a subsidy line. Our housing society guide and subsidy slabs post cover the common-facility route and the slab arithmetic.

Single-point connections: who actually gets the credit

The 2024 amendment to the Rights of Consumers Rules matters here. New rule 4(14) says an Association may have a single point connection or individual connections for each owner, chosen by a transparent ballot run by the DISCOM. If more than 50% of owners prefer individual connections, each owner gets one. Under a single point connection, the Association handles metering, billing and collection, and charges to individual flats must be on a no-profit-no-loss basis (G.S.R. 125(E)).

The practical consequence: with a single point connection the DISCOM sees one consumer, so one bill takes the credit. The split among flats becomes the society's own billing. That is our reading of the Rules, not a line in any VNM regulation. If your pitch is "each flat sees its own credit on its own DISCOM bill", you need individual connections. Delhi now names single point consumers as VNM participants, so ask how the DISCOM will show shares on one bill.

What to ask the DISCOM, and what to file

Email these eight questions before you design the plant and keep the replies. The last column shows why one state's answer cannot be copied to another.

The documents below come from Gujarat's model VNM application form. Other DISCOMs will differ, so treat this as a starting pack, then match it to the form you are given.

Sources: GERC regulations 2026, Annexure II-C and Annexure IV; MERC Second Amendment, regulation 8.11; JSERC regulations, clause 4.1; TGERC Regulation 1 of 2025, clause 4.10. Read 31 October 2026. For the wider file, see how to apply for net metering and the PM Surya Ghar document list.

Show VNM and GNM savings in a proposal without overpromising

A shared-plant proposal must show a range, name its conditions and keep the subsidy line honest. The two examples below are illustrative. Replace every assumption with your DISCOM's rule and your own quote.

Example 1. A society VNM plant (illustrative)

Example 2. Group net metering across three connections (illustrative)

An owner has three commercial connections in one name, one tariff category and one DISCOM area. A 100 kW plant at unit A gives 1,40,000 kWh a year. Unit A uses 60,000 kWh, so that much is offset first. The remaining 80,000 kWh goes down the priority list. Tariffs are assumed: A ₹8.00, B ₹9.00, C ₹7.50 per kWh.

The order is worth ₹60,000 a year here, so put the dearest tariff first where the consumer may choose. Delhi and Jharkhand use a consumer-set priority list. Gujarat's GNM uses an allocation ratio instead, so the lever does not exist there. It ignores monthly timing, time-of-day blocks and carry-forward rules.

What the proposal page should carry

A sample line for the terms: "Bill credit depends on the DISCOM agreement in force at commissioning. Savings shown are estimates under the assumptions listed and may change if the regulator revises charges or allocation rules."

How QuickEstimate fits

Quickest Solar CRM does not model VNM or GNM credit allocation. Do the share and savings sums in a sheet, as in the examples above. Use the proposal for a branded document your customer can read and forward.

The proposal templates carry your logo, the item lines for the plant, product photos, and your terms and conditions, so the assumptions and DISCOM conditions above can sit in the terms of every shared-plant quote. You can share the PDF on WhatsApp. The PM Surya Ghar subsidy can be applied in a proposal where the customer qualifies, so apply it on individual homes and leave it off a shared plant until eligibility is confirmed.

• Proposal Generator: a proposal template with your logo, items, product photos and terms, ready to share as a PDF on WhatsApp.
• Free plan: 1 user and 10 proposals a month, no card, so you can try a shared-plant proposal on your next society lead. Pro is ₹6,999 per user per year, 3-user minimum, billed yearly with a GST invoice.
• Book a demo if you want a walk-through of the proposal template with your own terms.

What to do this week

• List your open society and multi-site leads. Run the Wire, Name, Class Check on each and drop any that fail before you design a plant.
• Email the eight DISCOM questions above for the two leads that pass, and ask for the regulation name, date and application form in the reply.
• Build one shared-plant proposal with low, base and high scenarios, the conditions block and no subsidy line. Re-read Table A on this page against the regulator's page before you send it, because these rules are moving.

We read these rules on 31 October 2026 and will review this page by April 2027. Related reading: what is net metering, net metering vs gross metering, import and export units and the DISCOM list.

Frequently asked questions

What is virtual net metering in India?

Virtual net metering is an arrangement where a plant exports all its energy to the grid and the DISCOM credits the units to several participating consumers in the same DISCOM area, in agreed shares. The plant need not sit on any participant's own roof. It exists only where a state commission has notified it. Delhi, Maharashtra, Gujarat, Jharkhand, Odisha, Telangana and Kerala have notified rules we could read.

What is the difference between group and virtual net metering?

Group net metering is for one consumer with several connections. Surplus from a plant at one connection is adjusted against that consumer's other connections. Virtual net metering is for several different consumers sharing one plant, with credit split by an agreed ratio. Gujarat reads GNM as the same name and tariff category. Delhi and Odisha describe GNM as "the same consumer".

Do the central rules allow virtual net metering?

The Electricity (Rights of Consumers) Rules, 2020 and its amendments of 2021, 2022, 2023 and 2024 do not define virtual or group net metering. Rule 11(4) leaves net metering arrangements to State Commission regulations. MNRE's July 2025 PM Surya Ghar guidelines say metering arrangements approved by state commissions, including VNM and GNM, are covered under the scheme.

Can a housing society use virtual net metering in Maharashtra?

Yes, on the regulation text, but only residential consumers in a multi-storey building can use it. MERC's Second Amendment Regulations of 29 August 2024 let several residential consumers of one society, with its common connection, set up a plant together. Total capacity cannot exceed the sum of each participant's eligible capacity. Ask MSEDCL for its procedure and form before you quote, because stakeholders told MERC in 2026 that implementation was missing.

Can a factory or a group of MSMEs use virtual net metering?

It depends on the state. Maharashtra restricts VNM to residential flats. Delhi's amendment dated 20 January 2026 allows all consumers. Gujarat allows all categories if participants share one tariff category, for 10 to 4,000 kW AC. Telangana allows all categories except temporary supply below 100 kWp. Kerala admits only MSMEs of 10 kW or less. Check charges too, because non-residential participants in Gujarat pay banking charges.

Does PM Surya Ghar subsidy apply to a shared VNM or GNM plant?

Partly. MNRE's July 2025 guidelines say VNM and GNM installations are CFA-eligible if they are on a roof, terrace or elevated structure and the DISCOM approves the metering. They give no separate rate for a plant that serves flat bills, and they exclude commercial, industrial and government segments and RESCO-owned plants. Confirm in writing before you show a subsidy line.

What happens to unused credits under VNM?

It depends on the state. In Gujarat, non-residential banked credit is capped at 30% of energy drawn, must be used within the billing cycle and lapses otherwise, while residential surplus is bought at ₹2.25 per kWh or the Commission's rate. Jharkhand pays unadjusted credit at a rate in the licensee's tariff order at year end. Ask the DISCOM for the year-end rule before you quote a saving.